According to newspaper Folha, one of Eike Batista’s companies, OSX, is in serious trouble. The company has defaulted on at least one supplier and is being pressured by banks to restructure or pay US$ 2 billion in short-term debt.

The article says OSX did not honor a payment of around R$500 million to Spanish construction company Acciona. The two companies are still negotiating, but Acciona does not rule out filing for OSX’s bankruptcy.

Source: Folha

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2 Responses to Eike Batista defaults on R$500 million payment…

  1. Jack Ganoza says:

    Well, at least markets are and have been adequately factoring in the messy Brazilian landscape.

    http://oglobo.globo.com/economia/vale-petrobras-tem-maior-perda-de-valor-de-mercado-do-ibovespa-8800583

    Let’s not blame it all on the Fed, China, or the Eurozone. There are structural issues with the ISI 2.0 being attempted in Brazil. The dismal effect on the national welfare is finally being noticed. Hence, the protests.

    It seems time to short. We should wonder where the GS boys are nowadays, because until not too long ago they were still pushing BR equity instruments. Probably vacationing after the huge profits made.

  2. Rodrigo Rodrigues says:

    In most industries, losing $30 billion in a single year will get you fired and, maybe, sued by your shareholders, but not in Brazil, Mr Batista will walk away, I do believe that Bndes had to have some idea that something was amiss. There are many annual compliance classes that each employee has to take and pass annually. A Client like Eike probably has several top level exes assigned to manage his portfolio, His downfall was not by accident,his risk management team failed big time,Bndes had to know what I was doing regarding this fraud, selling empty boxes to naive shareholders,If you use a gun and wear a mask to take some ones money you go to jail But if you use an ink pen and wear a suit,to take some ones money,that’s just business, Mr. Batistas reputation and charm that made Brazilians believe what he was telling them. He was a great Brazilian success story. But of course it was all far too good to be true,The banks and govermental regulators were all in on this catastrophe. The term here for understanding complicity is fiduciary responsibility, in that which those in charge have a responsibility to shareholders to ensure that our money and investments are not frivolously tossed away to the winds of a smooth talking salesman.

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